The royal commission into child abuse has been told a paedophile scout leader was not stood down because it would look bad to sack someone who was part Aboriginal.

The allegation was made on the opening day of the commission's first public hearing in Sydney.

Former Scouts Australia group leader Armand Hoitink said scoutmaster Steven Larkins was left working with children, even though he was caught showering with them and putting love notes under their doors.

Armand Hoitink said he and his wife resigned from the organisation in 1998 because they were concerned about the conduct.

He said when he asked officials why Larkins had not been sacked, he was told it was because Larkins was part Aboriginal.

"They thought it would be bad publicity," Mr Hoitink said.

Larkins is serving a jail sentence for offences that include possessing child pornography and falsifying his working with children check.

The evidence about him was presented at the first Sydney public hearing for the Royal Commission into Institutional Responses to Child Sexual Abuse.

The former scout leader and children's services worker last year pleaded guilty to offences that included the aggravated indecent assault of two children, aged 11 and 12, possession of child abuse material and dishonesty offences to avoid detection.

The inquiry heard Larkins - who had been reported to police for giving out lollies to recruit children to the Scouts - had falsified documents and nominated himself as a contact for his own background check.

Senior counsel for the commission Gail Furness told the hearing that Larkins's contact with five institutions was being examined.

They are Scouts Australia NSW branch, Hunter Aboriginal Children's Services (HACS), the former Department of Community Services (DoCS), the Commission for Children and Young People, and NSW Police.

"This case study is expected to provide important insights into how and why a person about whom there were concerns since the early 1990s remained as a scout leader, evaded a state-run vetting process designed to expose him, escaped early prosecution, obtained employment in a non-government agency charged with providing a safe place for children - which itself was under the close scrutiny of the state - and was allowed to be the carer of a young person," Ms Furness said.

The inquiry heard that in 1998 the Director of Public Prosecutions (DPP) was asked for advice on whether to prosecute Larkins for the aggravated indecent assault of a child, known as AC.

It heard the case was dropped after police incorrectly told the victim's mother the prosecution was not likely.

"COPS, the (police) recording system recorded that Senior Constable Amloh told Senior Constable Turney that the DPP advised that the prosecution was not likely to proceed," the senior counsel said.

"A conversation with AC's mother, AB, took place shortly thereafter.

"The evidence before this royal commission is likely to show that the DPP was not of that view, and indeed a few days later the DPP wrote to Senior Constable Turney recommending that the prosecution go ahead."

The inquiry heard that AC's mother later told police her son was no longer willing to proceed with the prosecution because of "delay and the initial misinformation".

Falsifying documents

Ms Furness also told the commission that Larkins had been assessed as "medium risk" after applying for a working with children check from DoCS in 2003.

The senior counsel said Larkins was able to nominate himself as the contact person for his own background check and was subsequently informed of the assessment decision, although nobody else at HACS was.

She said the next year he sought to have that assessment overturned on the basis that he had never been charged or convicted.

She said he also falsified a statutory declaration which stated that as coordinator of HACS he did not have direct contact with children.

"Mr Larkins confirmed that this was the case in a statutory declaration," she said.

"The evidence will reveal that this declaration was falsely created.

Analysis

Emily Bourke at the royal commission

Many survivors and advocacy groups never thought this day would come. And so it comes with a lot of mixed emotions - some relief that that this day has finally arrived, but also anxiety and some concern about what this might unearth.

The commission itself has gone to great lengths to make this a safe environment for victims and witnesses. The physical space is not dissimilar to a courtroom but it's much gentler. It's not an intimidating space at all.

It is purpose-built and the filming and webstream of proceedings has been very carefully arranged so the victims aren't identified and the public gallery is also not identified. Some witnesses have been given pseudonyms.

In the event that witnesses or indeed the commissioners become distressed, there are counsellors on stand-by to offer assistance.

The inquiry was commissioned by the Federal Government to investigate allegations of systemic abuse within religious and state-run institutions.

Justice McClellan says some preliminary themes have already emerged.

"It is apparent that where an organisation lacks an appropriate culture, and there are not appropriate practices and training of staff within the organisation, there is a risk that sexual abuse will occur," he said.

"In some institutions, there may be only one perpetrator. In others, there will be multiple abusers and many children may be abused.

"It is reported to us that when it occurs in residential institutions, sexual abuse is almost always accompanied by almost unbelievable levels of physical violence inflicted on the children by the adults who have responsibility for their welfare."

Justice McClellan noted the effect abuse has had on many victims.

"Many have thought of suicide and some have attempted it," he said.

Future hearings

Monday was the beginning of a series of hearings by the commission in New South Wales.

In October, the inquiry will examine the response of the YMCA and police to allegations Jonathan Lord sexually abused children in the organisations care.

The commission's attention will move north in November, when it examines the handling of allegations of child sexual abuse in the North Coast Children’s Home by the Anglican Diocese of Grafton in 2006 and 2007.

A final public hearing in December will hear evidence about the "establishment, operation and review of the Towards Healing process by the Catholic Church".

Ms Furness also told the hearing that an orphanage, another Catholic Church institution and the Salvation Army will be the subjects of hearings next year.

Free trade is the oldest argument in federal politics and the issue that literally defined the federation era but opposition exists to the TPP, courtesy of the Investor-State Dispute Resolutions clause.